I have just been promoted and am now entitled to a company car. The company I work for has a deal with Audi, Vauxhall, Saab and Ford but I have no idea what to go for!! Some of my collegues are recommending the Audi A3 diesel as the CO2 emmissions are low and this I what I am taxed on. I have up to £19k allowance but need some advice so I can make a decision. HELP!!
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Ok first thing you should know is........
You will be taxed on the full list price of the car including any extras. This is called the p11d value. The % of tax you pay on this value every year is based on the CO2 output of said car. Diesels put out less C02 than petrol so seem cheaper in tax, however if its not a modern clean diesel (called Euro IV (thats euro 4) ) then they will lump another 3% tax on top.
You need to go to the inland revenue site, and look up the tables of taxable benefit vs CO2 value and do the sums.
Also - Petrol card? yes no? Petrol cards really sting you tax wise.
Choosing a car? get in touch with your lease company (if there is one) and get the to arrange longer term loans to try them out. Choosing mine I got three day loans of cars for a really good test.
Also - Do they provide money instead of co car? and milaege payments? look at those sums as well
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Pedant mode on .. Your 'benefit in kind'(P11d value) will be calculated based on the the full list price of the car multiplied by its CO2 derived tax rate.
The resulting figure the benefit in kind /P11d figure is what you will pay tax on each year.
pedant mode off.....
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Quite right. Fingers engaged before brain.
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OK to answer questions asked, No I don't geta petrol card but I do get business miles paid for. Considereing I do a 90 mile daily commute I need something that is fuel efficient (probably Diesal, no?)
I do have the option of taking money instead of the car but I have alreday worked this out and financially it makes more sense to take the car.
Other questions asked, I need this car for work, it is not just a perk.
Don't know personal vs business mileage but I will be driving up and down England on fairly regular basis.
No other restrictions apart from money as to what car I get.
The 19k that I have to spend takes into account that the comapny buys the cars at a good price so I do get more for my money than I would from a dealer.
As for tax code, I believe I stay in the same tax bracket.
Finally, I think I have decided to go for the A3 assuming I actually like it once I have taken it for a test drive.
Again, thanks everyone for your help!
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"The 19k that I have to spend takes into account that the comapny buys the cars at a good price so I do get more for my money than I would from a dealer."
Nope you dont. You pay tax on the published full list price including extras (everything) regardless of how much your company paid for it.
so for example if your car had a list price of £22k and your firm paid £18,999 the Inland revenue will add *25% of 22k to your final salary each year and tax you on that. That in turn could put you over the 40% tax threshold.
(* if that is the co2 rate of that car)
Also, your company is buying. Indicates its not a big fleet user or they would be using a leasing company. That in turn means you could probably negotiate a deal just as good if not better.
It very very very rarely works out financially better to take a company car over the money (you did include the mileage money you can claim back from IR in your costs case?)
The one thing that Co car driving brings you is piece of mind. You dont have to worry about paying for servicing, road tax, insurance. If it breaks you leave it where it is and phone Hertz. Thas why I do it.
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Do you need the car for your job, or is it in the nature of a perk ?
Can you put a figure on your annual business mileage and your average personal mileage ?
Do you have the option of a cash allowance instead, or must you take the company vehicle option ?
Are there any restrictions other than the amount of money ?
Does your company buy their own cars, and therfore you can spend upto £19k, or do they mean any car with a list price of upto £19k ? Does that take into account the potential of special deals ? Does it take into accoutn any extras on the vehicle ?
(this is separate to the taxation issues which are just plain nasty)
Do you know just what this is going to do to your tax code !?!
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Don't just choose the car on strength of it's tax benefits!! You've got to live with it for the next 3 years, or so!!
All the car companies have Company Car Driver type 'clubs'. You'll get extra discounts/offers/extended test drives, presented to you. Every couple of months they send magazines filled with stuff, on why their cars are the best & tax calcs are often included.
& it's all free, of course.
Ford have 'Talkback' Pug have ?????, can't recall, but click their www, you'll soon find something!!
VB
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Try this site www.lvl.co.uk/ for tax calculator and comparisons of different cars.
--
\"Nothing less than 8 cylinders will do\"
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Do push for having your own car and claiming back petrol.
works out cheaper for you (not always for them)
i get 42p a mile.
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Do push for having your own car and claiming back petrol. works out cheaper for you (not always for them)
Its not necessarily cheaper! My company scheme gives me a new car for about the same price I'd pay to run a two-year old one myself. And it would be even more extreme if I was young or had no no-claims discount.
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You need to factor in whether you've got a safe place to park at home and work and whether you're predisposed to getting crunches and dings. If the answer is no to either of the first 2 and yes to the 3rd then you may want to consider the peace of mind of a company car, whereby your damaged car or broken down car is taken away and fixed while you have a hire car provided. Also nice to get a new car every couple of years, especially if you have kids or animals who take their toll on the interior. A lot also depends on whether or not your company can swing a good deal with their preferred suppliers over what your allowance will get you.
The fuel card is only worth it if you do more than something like 14000 private miles per annum.Your business mileage regime will also have to be factored into this decision.
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If you plump for the scheme, sit down and work out the tax difference over the leasing period between a particular diesel car and it's petrol counterpart. The result will almost certainly tell you to plump for a diesel vehicle and you should make sure that you pick a Euro IV engine. Unless you need a mid-size saloon, you should take an initial drive in the strongest diesel in your budget in the Astra, A3/Sportback, new Focus and new 9-3.
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Well, the Damzel in Distress came in here, asked her question, left and hasn't been seen since.
Dunno where she's gone.
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Well, the Damzel in Distress came in here, asked her question, left and hasn't been seen since.
It's only 24 hours since she posted.
But maybe she really is in distress, so will the Backroom's 4 knights* in shining armour go riding out to her rescue?
* OK, 3 knights and one tractor-driver, but let's not be pedantic ;-)
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Oh, You're back then, even if she isn't.
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I suspect your warning about tax has scared her off Mark :)
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Oh, You're back then, even if she isn't.
I didn't know I was gone.
But then, if a disappearnce would trigger a sortie by the knights in shining armour ...
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I'm still here! I am busily trying to process all the information probided and trust me I appreciate all of your help!!!
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